How Much Health Insurance Do You Need for Your Parents?

Having adequate health insurance is crucial to ensure you receive enough financial support to cover your parents’ medical expenses. But how would you know how much sum insured is enough to support your parents’ medical needs and minimise financial burden? 

The answer is simple: all you need to do is follow this four-step process explained in this article and buy the most suitable health insurance for your parents. 

Four-Step Process to Find the Best Health Insurance for Senior Citizens

1. Step 1: Assess Medical History and Current Needs

The first and most crucial step is to check your parents’ medical history and current medical health conditions and needs. This will help you find accurate coverage and get a realistic idea of your needs. See if they have any chronic conditions or critical illnesses that may require ongoing medical care. 

Also, consider their age and age-related illnesses that may require attention in the future, if not now, such as vision-related issues, knee replacements, etc. Additionally, analyse the requirement of OPD consultations, alternative treatments or global coverage for critical care. A thorough assessment that covers all your needs helps you choose the best health insurance for parents.

2. Step 2: Estimate the Expected Healthcare Expense

Estimate the annual healthcare expenses based on your assessment in the earlier step. Consider local healthcare providers’ costs, general plan of treatment for a current chronic condition (if any) and your place of residence. If your parents live in metro cities, the expenses will be higher than in tier 2 or tier 3 cities. 

A higher sum insured reduces your financial strain and ensures quality care for your family. So, the chosen plan must offer you an option to have a higher sum insured.

3. Step 3: Consider Inflation and Rising Medical Costs

Medical treatment costs are expected to rise around 10-15% annually. This means that a ₹5 lakh health insurance plan might not cover the same expenses after 2-3 years as it does today. Therefore, when selecting a plan, choose a plan that provides sufficient coverage to cover the rise in medical costs and flexibility to adjust the sum insured if needed.

To beat rising costs and maintain sufficient coverage, look for features such as sum insured restoration, no claim bonus benefits or long-term health insurance plans. These ensure maximum coverage while saving your money on policy renewals.

4. Step 4: Shortlist Plans That Meet Offer Comprehensive Coverage

After assessing your parents’ needs and expenses, shortlist insurance plans that provide extensive coverage. Look for policies covering pre-existing conditions, annual check-ups, daycare procedures and pre-and post-hospitalisation expenses. Compare factors like waiting periods, sub-limits and premium affordability. 

For example, some plans may cover pre-existing illnesses after two years, while others may have a five-year waiting period. Focus on policies that balance coverage and cost-effectiveness, ensuring your parents receive optimal care without straining your budget.

What is the Ideal Coverage for Health Insurance for Parents?

Determining the ideal coverage of health insurance for your parents depends on various factors such as their age, pre-existing illnesses, location and lifestyle. In addition to these factors, you also must consider other medical requirements such as daycare procedures or annual health check-ups. 

So, for example, suppose your parents live in Mumbai, where medical treatments are expensive, and both have pre-existing illnesses, including high blood pressure and diabetes. After considering these factors, it is recommended to opt for a policy of at least ₹10-₹15 lakhs to cover hospitalisations, specialist consultation and expensive treatments. 

So, the ideal coverage for your parents would cover their medical needs, including planned and unplanned treatments, without you having to worry about out-of-pocket expenses.

Ensure Adequate Coverage with TATA AIG Health Insurance Plans

TATA AIG offers comprehensive plans tailored to the needs of senior citizen parents and suited to cover diverse healthcare needs. Their policies offer coverage for pre-existing diseases, daycare treatments, road ambulance cover, AYUSH treatments and more. They also offer paperless purchases, an easy claims process and cashless treatments all at affordable rates. 

Their additional benefits include coverage for annual health check-ups, no-claim bonuses, high sum insured and discounts of up to 10% on long-term policy purchases. TATA AIG’s reliable services and customer-centric approach ensure your parents are well taken care of and your unexpected and planned medical expenses are covered.